The dollar index was steady at 101.34, near the 13-month high seen last week

The U.S. dollar held firm on Monday, on ​track for its biggest monthly gain in nearly a year, as Gulf tensions and elevated Treasury yields ‌underpinned demand ahead of key jobs data later in the week.

Iran and U.S. traded new barbs over the weekend before they agreed to stop tit-for-tat attacks and meet in Qatar on Tuesday, leaving investors nervous about the declared ceasefire.

Oil prices increased on Monday as strikes again slowed oil shipping ​in the Strait of Hormuz, supporting safe-haven bids for the U.S. currency.

The euro was flat at $1.1386 after hitting a ​13-month low against the dollar last week and on track for a 2.4% monthly decline.

The risk-sensitive Australian dollar fetched $0.6889, heading for ​a 4.1% monthly decline. The New Zealand dollar hovered near a seven-month low at $0.5646, down 5.8% for the month.

The Japanese yen ​last traded at 161.75, continuing to languish near a 40-year low.

The dollar index was steady at 101.34, near the 13-month high seen last week.

It is now on track for a 2.5% gain ​for June, which marks the biggest monthly advance since July last year.

Tensions in the Middle East have continued to stoke inflation ​pressures, while a surprisingly hawkish debut from Kevin Warsh as U.S. central bank chair earlier in the month has reversed market expectations for rate cuts this ‌year ⁠and sent Treasury yields sharply higher.

The market narrative has shifted to a “high-for-longer” U.S. rates environment following the June Federal Open Market Committee meeting, which anchors the dollar’s strength amid macro strength, according to Lloyd Chan, a senior currency analyst at MUFG Bank.

USD downside likely remains contained unless there is a clear dovish pivot by the Fed or a material deterioration of US macro ​data, he said.